NBA Topshot recently hit $1M trading volume in a 24 hour period which is WILD. What is NBA Topshot? Let’s dive in.
(Data from cryptoslam.io)
Think of collecting NBA Cards BUT digital. And instead of cards you’re collecting ‘moments’ or video highlights as NFTs.
🚨TOP COLLECTOR ALERT🚨@BalesFootball acquired this Serial No. 1 Ja Morant Legendary Moment from our Cosmic Series 1 set for $35,000 👀 That is not a typo. $35,000 💰💰💰
The TOP sale for a #NBATopShot Moment … so far 📈📈📈
Congrats on the addition to the collection 🔥🔥🔥 pic.twitter.com/Erlyt8wqcc
— NBA Top Shot (@nba_topshot) January 14, 2021
You’re probably like..dude..that’s a GIF..and yes, it is lol BUT there’s some differences,
- Each moment is an NFT, (Non Fungible Token), and thus trade-able among collectors,
- They have a concept of scarcity due to being on blockchain/NFTs.
- They’re officially licensed by NBA, built on the FLOW blockchain, (A product by Dapper Labs – CryptoKitties).
- People are paying serious $ for them. At time of writing, highest sale is $35k, (see above tweet). Below is a snapshot of the last hour or two of sales,
Let’s rewind it back,
NFTs allow you to attach a ‘certificate of ownership’ in the form of a token to anything digital. Art, Virtual land, game items, etc. One of their strongest use-case started with collectibles, (Cryptokitties).
Dapper Labs, the company behind Cryptokitties have also built their own blockchain, FLOW. In their own words,
“Flow is a new blockchain built for the next generation of apps, games, and the digital assets that power them.”
They’ve been slowly onboarding partners,
NBA being one of them and thus – NBA Topshot.
Collectible NBA ‘moments’, similar to collecting cards in real life.
You wouldn’t think people would pay real $ for digital collectibles but hey, there’s been Cryptokitties, Cryptopunks AND Axie’s that have gone for $150k+!
So why not bring a huge IP, with a crazy collector fanbase, (sports), build it on a scaleable blockchain and test this out? That’s what’s going on here.
You can buy packs, that drop ‘moments’, each having their own mint number, rarity, animation, etc. Packs look like this,
These packs drop different moments. ‘Commons’ look like this, (obviously animated).
Whereas Legendaries look like this,
Each moment comes with a ton more info such as the game score, moment type, mint number, etc.
NBA Topshot have a game in the works to give these NFTs more utility then just collecting. Although collecting itself is a huge deal.
This is the most intriguing. I don’t know anything about NBA, but I do understand $ & data. $1M in 24 hour daily sales has only happened a handful of times in the last 3 years of NFTs.
Why is it important? Because it shows a lot of people are willing to buy off others, (not primary market), which validates the project. It also allows for a healthy trade environment where sellers can sell easily.
The all time secondary volume shows $7M, ($12M+ has been spent primary + secondary), with 4,283 unique wallets/collectors. That’s a LOT!
In the last 24 hours, ~1,500 different wallets bought and sold topshot moments. Again, indicators of a very healthy market.
Here’s a snapshot of the top common moments in cryptoed’s NBA marketplace analysis video on YouTube. The ‘lowest ask’ for the most expensive commons LE, (Limited Edition meaning supply capped) seemed to have been $100-$265 at the time.
This was on Jan 1st.
Now they’re $1-$2k, (Jan 17th). Crazy,
This is the first time NBA topshot has crossed $1M in 24 hours volume so we’re yet to see if this is going to be a regular occurrence.
But considering how big the NBA fanbase is and that once again, crypto money is accelerating this space, if mainstream NBA collectors start to get into it and further validate the marketplace/concept this could really blow up.
I have to admit, they’ve nailed a lot of things here.
The UI is great, the data available allows new buyers to make an investment decision real quick and the fact that they’re looking into more utility for these NFTs is a great sign.
But the main indicator is that there’s a lot of sales volume and it seems a LOT of it is non-crypto $! How’s that for adoption? Finally, a blockchain product that’s moving away from being connected to the crypto markets.
This makes it less effected to price swings when crypto pumps/dumps, which traditionally has influenced NFT markets.
Also, the fact that there’s actual NBA players and non NFT native personalities buying these is an indicator that mainstream are starting to get it.
Tyler Herro recently posted NBA Topshot on his Instagram,
2.4M followers, 1 of 100’s of players in the NBA, can you imagine if it becomes a thing amongst their fans?
Also players Tweeting them getting involved in collecting,
I feel, Dapper has created the UI mechanics needed to educate non-crypto people to what digital collecting could look like.
Too bad I don’t know much about NBA or I’d be deep into this. I think it’s the start of physical brands bringing their collector base digital.
Big potential imo.